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    Econometrics regression instructions

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    a. using the table above plot a graph of predicted change against actual change

    b. Find the sample correlation between predicted change and actual change

    c. Fit by least squares the regression of actual change on predicted change

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    Solution Preview

    I entered the data into Excel worksheet, I consider series X_t as the actual changes series F_t as the predicted changes, e_t as the errors of prediction ...

    Solution Summary

    Econometrics regression instructions are provided.